Noritsu Koki Co (7744) Q4 2024 earnings summary

Executive summary

• FY24 revenue and operating profit rose year-over-year, driven by audio equipment/peripherals growth and a weak yen.

• Net profit increased due to higher operating profit and a gain on the sale of PreMedica shares.

• FY24 results exceeded the revised forecast from November 28.

• Medical testing business was classified as discontinued operations after the transfer of PreMedica Inc. shares; profits from discontinued operations shown separately.

• Comprehensive income increased to ¥22,323 million from ¥21,387 million year-over-year.

Financial highlights

• FY24 revenue: ¥106,539 million (+18.3% YoY); operating profit: ¥20,507 million (+42.5% YoY); net profit: ¥16,120 million (+58.1% YoY).

• Operating EBITDA: ¥24,283 million (+37.2% YoY); margin improved to 22.8%.

• Cash and cash equivalents increased by ¥22.6 billion to ¥92,856 million.

• Total assets grew to ¥299,368 million, and total equity to ¥222,960 million.

• Basic earnings per share increased to ¥451.61 from ¥285.88 year-over-year.

Outlook and guidance

• FY25 revenue forecast: ¥112,600 million (+5.7% YoY); operating profit: ¥17,400 million (-15.2% YoY); net profit: ¥11,700 million (-27.4% YoY).

• Operating EBITDA expected to decline to ¥23,300 million (-4.1% YoY) due to increased investments and forex effects.

• Dividend forecast for FY25: ¥221 per share (pre-stock split), with a total return ratio of 84%.

• Stock split (3-for-1) effective July 1, 2025, and planned sale of some cross-shareholdings to improve capital efficiency.

• Basic EPS forecast at ¥109.24 (¥327.73 excluding stock split effect).